The average person might not recognize the name of Jeff Bezos, but after losing $6 billion in stocks, he puts a face to the financial victims of the free-falling market making headlines recently. Bezos owns almost 84 million shares in Amazon and in just 24 hours his $631 a share stocks went to $578 a share, causing the billionaire to lose an astronomical amount of money.
According to The Business Insider on January 29, Bezos is the CEO of Amazon and he is feeling the financial pain that others are just reading about in the headlines this week. Amazon missed “both its estimated earnings per share and revenue benchmarks,” which sent the stocks into a nose dive. The lack of earnings by the online giant brought major disappointment to Wall Street.
Amazon had a disappointing holiday quarter due to the company’s expenses and the biggest culprit with expenses was shipping. This cost exceeded what Amazon had expected and this sent the stocks plummeting on Friday.
Fortune Magazine puts it quite simply “In pure dollar terms, Amazon CEO Jeff Bezos is having a much worse day than you are.” After Amazon posted a “significantly less profit” for the holiday quarter than it expected, the “panicky investors” didn’t find much comfort in Amazon Web Services growing “at a rate that would make most companies green with envy.” The Amazon Web Services accounted for 142 percent of Amazon’s profits in the last quarter.
While Bezos is most likely feeling some pain today from this astronomical loss in the stock market, he didn’t lose enough to take him off the list of the “Richest People on Earth,” reports The Business Insider. Still, no matter how much money this CEO has, the $6 billion is “not pocket change” for anybody.
Celebrity Net Worth reports that Amazon stocks “instantly went off a cliff” on Friday after Amazon reported earnings that Wall Street found disappointing. The price of Amazon stock dropped more than 10% in premarket trading on Friday morning. “When the smoke cleared, $6 billion had been erased from Jeff’s net worth.” The good news for the Amazon billionaire is that he is still worth somewhere in the neighborhood of $50 billion.
2015 was a banner year for Bezos going from the 24th place on the “Richest Person on the Earth” list to the 5th spot. Now with the start of 2016 erasing $6 billion of the billionaire’s worth overnight, the hopes of Amazon turning things around weighs heavy on the investors minds. Considering Amazon stock makes up 93 percent of Bezos’ worth, chances are this is on his mind too!